News hardware Buy your graphics card now before the China-Taiwan dispute gets in the way
RTX 4090, RX 7000, or iPhone, these are the electronic products that depend on TSMC factories based in Taiwan. The world is changing, and geopolitics too. The potential invasion of the island by China could jeopardize a good part of the production of semiconductors and other products such as electronic chips. So, what are we likely to see in the coming months?
What is the situation in Taiwan?
Taiwan is THE country of electronic components. TSMC, ASE Technology or MediaTek, many factories were born on this island.
In the lot, we can find companies that supply customers such as AMD, Nvidia, Apple or Broadcom. Important companies in the tech world because they design products distributed on a very large scale, such as graphics cards or smartphones.
China has refused to recognize Taiwan as a real state since the communist revolution led by Mao Zedong in 1949. And even in 1971, the UN assigned a seat to Beijing to the detriment of Taiwan, which was losing enormous power on an international scale.
After the recognition of China by the United States, the island of Taiwan lives under constant threat from the Middle Kingdom, especially after the rupture of diplomatic relations between Taipei (capital of Taiwan) and Washington in 1979.
Since then, the fear of Chinese invasion has been palpable since the 1980s, and to give you an idea, 14 billion euros (or 2% of the country’s GDP) are allocated to defence.
Even if the President of the United States, Joe Biden announced that he wanted to defend Taiwan against China in the event of an armed conflict, President Xi Jinping replied that he should not play with fire.
As you will have understood, the tension is rising between the two powers, and Taiwan is in the middle of it all…
What impact on the production of Nvidia, AMD graphics cards, and other electronic products?
As we said, Taiwan has the crème de la crème of electronic component factories.
And as we have unfortunately seen today in a certain European country, the consequences are sometimes international. Ukraine produces a lot of wheat and chemical products for paper, and one thing leads to another, we find ourselves faced with an increase in paper and cardboard for all European companies, and consequently an increase in the price of books.
For the China-Taiwan conflict, the same thing is likely to happen, but with an even more international scope, since Taiwanese electronic companies produce for the whole world.
The shortage of electronic components hangs in our face, once again, as strong as the shortage that occurred during Covid19.
The prices of graphics cards and processors were gradually returning to normal, and even Sony promised us larger PS5 stocks by 2024, this now seems compromised.
If you ever had it in your head to get yourself a whole new PC setup by the end of the year, that plan could well be in jeopardy. The RTX 4090 should point the tip of its nose by the end of 2022, but the shortage may well stop its production.
Obviously, it’s time to make you a new PC configuration, since the shortage will mark the start of a sharp price increase, as we saw during confinement.